Real Estate Terms Glossary
What are Loan Origination Fees?
We can define loan origination fees, also called underwriting or processing fee, as the amount a lender or bank charges to set up your loan. In most cases, lenders charge a loan origination fee as a specific percentage of the total loan amount.
They are also quoted as a specific percentage of the total loan and are usually from 0.5% to 1% of a mortgage loan in the US. Typically, larger loans tend to come with smaller fees.
Examples of Loan Origination Fees
- Example 1: Appraisal fee
- Example 2: Escrow fee
Here’s Investopedia’s definition of Loan Origination Fees .
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